Rental Assistance Demonstration Presentation to TRACS Industry Working Group 4/7/16

2 The Problem – Public housing at risk due to deferred capital repairs caused by a long history of underfunding of the program – 10,000-15,000 public housing units lost each year – Current needs exceed $25.6B across the portfolio (+$23k per unit) – Section 9 platform creates barriers to accessing private capital – Multifamily “legacy” assisted housing properties also at risk A Tool to Start the Solution – RAD created in FY12 Appropriations, expanded in FY2015 – Preserves at-risk public housing and at-risk legacy properties by targeting the risk issues through conversion to long-term Section 8 Housing Assistance Payment (HAP) contracts Background on RAD

RAD Program Structure 3 Public Housing Mod Rehab (including SRO) Rent Supp & RAP RAD for Public Housing “1 st Component” 185,000 Unit Cap PBRAPBV RAD for Legacy Assisted Housing “2nd Component” No-Cap PBV PBRA Program rules set forth in PIH Notice Rev 2

4 RAD for Public Housing – Rent Setting At conversion, PHAs will convert funding to a Section 8 contract rent

Status of RAD 1 st Component (Public Housing) 30,115 units have completed conversion – $2.1 Billion new investment for rehabilitation/construction Initial awards made up to the 185,000 unit statutory cap Waiting list of 8,000 units has formed RAD Evaluation Interim Report expected in Summer nd Component (Rent Supp, RAP, Mod Rehab) 18,000 units preserved 9,500 units in process of conversion 5

RAD FY 17 Budget Requests Eliminate the cap on the public housing units that can convert at no cost Allow Section 202 Project Rental Assistance Contracts (PRACs) to convert under 2 nd Component at no cost $50 million for incremental subsidy for public housing and Section 202 PRAC conversions for properties with significant capital needs and high preservation value

Unique RAD 1 st Component Provisions Impacting TRACS Funding – While must be submitted starting on the HAP Effective date, funding for the balance of the calendar year continues to flow through public housing appropriations. During this period voucher should be adjusted to $0 – Normal voucher processing begins January for the calendar year following conversion Rehab Assistance Payments – units that are vacant as a result of initial repairs are eligible for HAP subsidy 7

Unique RAD 1 st Component Provisions Impacting TRACS Tenant Rent Phase-In – in the event that tenant rents will increase to 30% of AGI as a result of conversion, rents can be phased in Tenants carry over same annual recertification date 8

Unique RAD 2nd Component Provisions Impacting TRACS 90 day grace period for tenant certifications 9

RAD Notice: PIH Rev 2 RAD PBRA Quick Reference Guide ( Additional Resources 10

11 Thank you